Side gigs are becoming more lucrative and less necessary for people

Side hustling has become a common practice among many Americans, with about 36% of U.S. adults engaging in side gigs to supplement their main source of income. According to a recent survey by Bankrate, the average side gig now nets $891 a month, showing a 10% increase since 2023. This increase in earnings is a positive sign for the side-hustle economy, especially as inflation rates have started to cool down.

Despite the positive trend in side hustle earnings, the fact that so many people still need a secondary source of income even in a good job market is concerning. Ted Rossman, Bankrate’s senior credit card analyst, highlighted that the number of people engaging in side hustles has doubled since 2017, indicating a persistent need for additional income among many individuals. However, the recent survey data suggests progress as inflation rates have started to decline.

Inflation rates have been a significant concern for many Americans, impacting their purchasing power and overall financial stability. However, recent data shows a decline in inflation, with the consumer price index dropping to 3% in June. This decrease in inflation, coupled with a rise in average hourly earnings, has provided some relief to workers who have been struggling to make ends meet.

One individual who has experienced the benefits of side hustling is Dreon Owens, a 32-year-old living in Brooklyn, New York. Despite landing a full-time job managing a housing nonprofit group, Owens took on a human resources consulting contract in May, bringing in an additional $2,500 a month on top of his $100,000 annual salary. This extra income has allowed Owens to support his family financially and have some breathing room in his budget.

The shift in how people are using their side hustle earnings is also notable, with more individuals now using the extra income to fund discretionary spending like travel or dining out. This change reflects a growing sense of financial stability among side-hustlers, who are now able to enjoy the fruits of their labor beyond just covering daily living costs.

As inflation rates continue to decline and consumer sentiment improves, many Americans are hopeful that their financial situation will improve in the coming months. Side hustling has proven to be a valuable source of additional income for many individuals, providing them with the flexibility and financial security they need to navigate an uncertain economic landscape. With the ability to earn more while hustling a little less, side hustlers are finding ways to thrive in an ever-changing economy.